The year 2022 will go down in history as the one when India’s EV revolution really kick-started. The monthly run rate increased 20x from 4,000 units per month in June 2021 to 80,000 units by the end of 2022. The EV revolution in India has not only spread outside urban areas, rising from a penetration rate of less than 1% in 2021 to approximately 6% in just one year.
The market in India has always existed and is ready to accept EVs – the new, superior technology, as evidenced by customer demand for EVs in tier 1, tier 2, and tier 3 cities.
This is just the beginning; there is a far greater chance to come. The transition to electric vehicles (EVs) began in the West with organizations like Tesla, and more recently Rivian, Lucid, and conventional European automakers like BMW, Mercedes, etc. These businesses have concentrated on Western-targeted items including huge pickup trucks, luxury sedans, and other vehicle types. The majority of people in the globe do not associate luxury goods with mobility. Over 99% of the (mobility) products marketed in India are priced between Rs. 1,000,000 and Rs. 50,000. This price range includes tiny, midsize sport utility vehicles, cars, scooters, motorcycles, and other two-wheeled products.
The Japanese historically controlled this market during the ICE period, with important names like Honda, Suzuki, Toyota, Nissan, etc. through creating key technologies, producing in large quantities, and commanding the world market.
As a result, Japan became one of the world’s top industrial nations. India now has the chance and the destiny to develop products in these markets that are of the highest quality and take the globe by storm. We will be able to make a strong play because of our advantages as one of the biggest and fastest-growing domestic markets, enterprising and innovative businesses, strong government and policy momentum, and access to top-notch people and money. To realize this goal, we must operate quickly, with a clear vision, and without giving in to the uncertainty and fear fueled by special interests.
India now has the chance to fully embrace the twenty-first century. The country will undergo an EV transformation and develop into a global EV hub throughout this decade and will need to concentrate on a four-pronged approach.
Create Elite Aspirational Items
As businesses embrace the disruption being generated by electric and connected technology, modern design aesthetic and rethink vehicle products for a new aspirational consumer, the $100 billion Indian auto sector will quickly change into EVs.
If these items are created to be best-in-class in terms of performance, technology, and design, they can become worldwide standards in the markets in which they are used.
Spend Money on R&D and Develop the Key Technology
The centerpiece of the ICE period was the internal combustion engine. Similar to this, the centerpiece of the EV age is the lithium battery.
Technology based on lithium is not yet a commodity. To increase the efficiency, security, and affordability of cells, there needs to be a lot of innovation. By investing in our own core R&D, we can lead the world in a number of areas, including increasing the energy density and fast charging rates of lithium cells, bringing sodium ion cells from the lab into practical application, accelerating the solid-state cell roadmap, and developing cells that perform better in our hot climate.
Create regional supply linkages
We must establish regional supply networks for new materials and parts. We only need to complete the final assembly of the goods! This involves the manufacturing of electrodes, rare earth magnets, power electronics, semiconductors, and motors. We may make investments in these sectors by utilizing India’s software, chemical, and pharmaceutical industries as well as our expanding electronics manufacturing base.